Flat Tax Vs Progressive Tax

  • Fair Tax

    serious problem that is being very seriously discussed and considered in our Congress. It is a plan called the Fair Tax. Legislative Status: The FairTax has been reintroduced for the 111th Congress. It is H.R. 25 in the House and S. 296 in the Senate. Benefits of the FairTax: The FairTax plan brings fairness, transparency, and efficiency to our unfair, complex, and confusing Tax Code. The FairTax rewards job creation, hard work, and individual responsibility. By doing away with payroll taxes

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  • Tax Manual

    Chapter 01 An Introduction to Tax SOLUTIONS MANUAL Discussion Questions (1) [LO1] Jessica’s friend Zachary once stated that he couldn’t understand why someone would take a tax course. Why is this a rather naïve view? Taxes are a part of everyday life and have a financial effect on many of the major personal decisions that individuals face (e.g., investment decisions, evaluating alternative job offers, saving for education expenses, gift or estate planning, etc.). (2) [LO1]

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  • Flat Tax vs. Progressive Tax

    Progressive Tax vs. Flat Tax The United States economy, as known by all, is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however, many people believe the system of Flat Tax, or Proportional Tax, should be the system that is used for taxing

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  • Tax Planning

    Tax Planning for salaried employees DON'T PAY MORE IN ORDER TO SAVE YOUR TAXES. Expert view for tax saving ........................................................................................................................................................ book I About this n India, most salaried people want to increase their personal savings and yearn to achieve financial freedom. But do they REALLY want to save money or are they too busy? Most people are not motivated enough

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  • Korea Tax

    Statutory Corporate Income Tax (from fiscal years beginning on or after 1.1.2012) Taxable Income (KRW million) Over 20,000 200 ~ 20,000 0 ~ 200 Marginal Rate (%) 22 20 10 Data Source: Korean Tax Service, access: http://www.nts.go.kr ∑( Dividend + Interest Income) < KRW 40 Mil. • Dividend income is taxed by withholding, at 14% • Dividend Tax Credits ∑( Dividend + Interest Income) > KRW 40 Mil. • Included in global income • Subject to ordinary income tax rate Corporate Shareholders

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  • Tax Paper

    contributions Common Law of Corporate Tax 1. Sham transaction doctrine. Two parts: 1) taxpayer was motivated by no business purpose other than obtaining tax benefits and 2) the transaction has no economic substance because no reasonable possibility of a profit exists. Rice’s Toyota v. Commish 4th 1985 2. Economic Substance Doctrine 3. Substance Over Form 4. Business Purpose 5. Step Transaction Doctrine Formation of a Corporation A0. Tax consequences to corporation -1032(a):

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  • Tax Reform Paper

    Tax Reform Position Paper Taxes are necessary because they fund the services provided by government. Americans will pay trillions in taxes. Beyond funding government, the federal tax system has profound effects on the economy as a whole and on individual taxpayers, both for today and tomorrow. Taxes change people’s behavior and influence the economy by altering incentives to work, consume, save and invest. This affects economic growth and future income, therefore, future government revenues.

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  • Irs Tax

    . . . . . . . . . . . . . 32 14. Federal Unemployment (FUTA) Tax . . . . . . . . 35 15. Special Rules for Various Types of Services and Payments . . . . . . . . . . . . . . . . . 37 16. How To Use the Income Tax Withholding Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Cat. No. 10000W Publication 15 (Circular E), Employer's Tax Guide For use in 2013 Future Developments For the latest

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  • Forum on Tax Reform

    Forum on Tax Reform Fundamental Tax Reform: An International Perspective Abstract - This paper examines trends in tax reforms. The analysis is limited to the experience of 30 OECD countries, and focuses particularly on changes since the year 2000. The paper analyses the general trend of reductions in both tax revenues and rates and the diversity in tax policies across OECD countries, reflecting the diversity in both economic circumstances and policy objectives. Developments in tax administration

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  • Flat Tax

    countries applied the system of progressive income tax, which was earlier applied in Western Europe. But it soon turned out to be a system that discouraged economic growth. Therefore, some of these countries since 1994 have established the system of flat tax. Flat tax implies the application of a single-level tax system. Flat tax is applied in consideration of the supposition that all income should be taxed only once during their circulation, precisely when they are owned. Flat tax system refers to the unification

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  • Carbon Tax

    A carbon tax is a tax imposed on the carbon content of fuels. It is a form of carbon pricing. Carbon taxes are a possible cost-effective means of reducing greenhouse gas emissions. From an economic outlook, carbon taxes are a type of Pigovian tax.They help to address the problem of emitters of greenhouse gases not face the full social costs of their actions. Carbon taxes can be a degenerating tax, in that it may directly or indirectly affect low-income groups disproportionately. The regressive impact

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  • Tax and Economic

    The Trend of U.S. Tax System The art of taxation was in the “plucking the goose so as to obtain the largest amount of the feathers with the least possible amount of hissing”, said by Jean-Baptiste Colbert, the seventeenth-century French finance minister. (Miller) From the historic perspective, current government of United States has developed a very efficient tax system of plucking its private–sector goose. While it seems this tax system indeed obtain the largest amount of the feathers, but the

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  • Fixing the Current Tax System

    Common Sense Approach to Reforming the Federal Tax System On February 3, 2013 marked the 100th birthday of the 16th Amendment. The 16th Amendment paved the way for the creation of the federal income tax that continues to this day to have far reaching repercussions on the American tax payer. Before the ratification of the 16th Amendment, the birth of the federal income tax dates back to the Civil War. In order to finance the Civil War, President Abraham Lincoln signed into law Revenue Act of

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  • Commissioner of Wealth Tax, Meerut vs. Sharvan Kumar Swarup & Sons

    Commissioner Of Wealth Tax, ... vs Sharvan Kumar Swarup & Sons on 22 September, 1994 Supreme Court of India Supreme Court of India Commissioner Of Wealth Tax, ... vs Sharvan Kumar Swarup & Sons on 22 September, 1994 Equivalent citations: 1995 ECR 425 SC, 1994 210 ITR 886 SC Author: V . M.N. Bench: M Venkatachaliah, S Agrawal JUDGMENT M.N. Venkatachaliah, CJ. 1. In these appeals and special leave petitions brought up by the Revenue the short but interesting question that arises is whether Rule

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  • Flat Tax

    Flat Tax Rate Eliminates Complicated System The first quarter of each year marks a period of turmoil and angst for many Americans as they race to complete the complicated forms of the current years’ federal income tax return. With more than 66,000 pages and 893 forms to choose from, the current Internal Revenue Service Code screams difficulty (Mitchell, 2005). Most politicians agree that changes are necessary; however there remains to be a major debate of ways to accomplish changes without stressing

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  • Tax Acct

    History: * First tax in 1861 to fund Civil War * Repealed in 1865 * Income tax law passed in 1894 but rejected by Supreme Court * 16th amendment was passed in 1913 * 42% of revenue is raised from individual income tax * 40% from social security, 9% corporate income tax, 9% other Tax Structure: * Progressive tax structure: tax rate increases as the tax base increases * US income tax system is this way * Proportional tax structure (flat tax): tax rate remains

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  • Time for a Flat Tax?

    Is it Time for a Flat Tax? Flat tax is defined as an income tax system in which everyone pays the same tax rate no matter his or her income. In 1913, the United States established an income tax to raise money for the government. In our current system, income tax is applied to various parties. Individuals, companies, corporations, an almost every entity that produces an income gets taxed. However, partnerships are not taxed. To calculate the taxable income, allowable deductions are subtracted from

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  • Income Tax

    I am overly surprised with the information presented in this article. With roughly over 300 million citizens in the U.S, in 2009 only 53% of these people payed federal income tax, while the other 47% are paying next to nothing and in many cases profiting from the government. I strongly believe in the “American Dream”, the ideology that America is a place where any thing is possible and a man or women can earn a modest living with hardwork and dedication, it seems as though this ideology is being

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  • Accounting Tax

    Introduction As far as we know, the corporation tax rate in United State of America is high. It is one of the highest corporation rates in the developed world which reach to 35%. In order to reduce the tax burden and make them more profitable, more and more American corporations choose to stash their cash overseas, since the developing countries such as China use tax incentives to attract foreign firms to support economic growth. Launching business in the developing countries become the strategy

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  • Tax and Estate

    Taxation and Estate Planning Individual Assignment Question 1: (a) Mr. Ngan Salaries Tax Computation Year of Assessment 2012/13 $ Salary 1400000 Special bonus 380000 Travelling allowance 55000 1835000 Less: Subscription for professional

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  • Pro Flat Tax

    1. February 2005 - Resolved: In the United States, the current system of federal income taxation should be replaced by a flat rate income tax. Speeches and Time Limits Speaker 1 (Team A, 1st speaker ).........................4 min. AFFIRMATIVE (PRO-FLAT TAX) SPEECH - Alastair Pearson: In the words of Adam Smith, the intellectual godfather of modern economics and classical liberalism: “No society can surely be flourishing and happy, of which the far greater part of the members are poor

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  • Tax Reform

    Tax Reform Racket First and foremost let us begin by clarifying that we are by no means economists. However, we are United States taxpayers, and we know us as well as our neighbors are being robbed. For a better understanding of this let us look at a few areas that led to this. These areas include Article I section 8 of the U.S. Constitution, the U.S. Civil War, and the 16th Amendment. Article I section 8 of the U.S. Constitution authorizes the power, The Congress shall have Power To lay and

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  • Reforming the U.S. Tax Code

    Federal tax reform has been a topic of discussion for some time now. As the national deficit has continued to increase over the past few years, so has the priority for this analysis. Although a number of proposals have been submitted, the problem is coming to an agreement on how exactly the code should be reformed, if reformed at all versus starting with a brand new code altogether. The problem is that there is no cookie cutter tax system that will be fair to all. With that being said, is a flat tax

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  • Tax Evasion

    OF MALAYSIAN TAX PRACTITIONERS’ PERCEPTION ON THE PRACTICE OF AGGRESSIVE TAX AVOIDANCE Nur Fikhriah Binti Takril, and Sri Wahyu Sakina Ahmad Sanusi Depertment of Accounting Faculty of Management and Muamalah Kolej Universiti Islam Antarabangsa Selangor nurfikhriah@kuis.edu.my, sriwahyu@kuis.edu.my ABSTRACT Malaysian tax research has put little attention on the tax morale of Malaysian tax environment. Therefore, the objective of this study is to explore the perception of Malaysian tax practitioners

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  • Tax Notes

    click on the "UPDATE" - Good for the Tax Return Problem · Print lecture notes online and bring them to the class · Take Home Quizzes · Assignments are not turned in - reinforce lectures; solutions are online Lecture Notes: Chapter 1 · Tax is the exaction for the support of the government; · Tax laws: to help economy; social considerations (old people get credits; blind people; etc.) · four characteristics of the tax: no direct relationship between the tax you pay and the benefits you get.

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  • Business Tax

    Question 2 The possible implication of that tax system for the Malaysian economy, If implemented. The Malaysian government has to make procedure decisions on how to implement the GST. The most necessary decision about VAT is if it should be imposed as a expenditure, gross-product or income-type tax. Malaysia proposed a consumption-based GST. The use of invoices for GST provides more simplicity on how the tax is imposed. For VAT imposed as an income-type the accounting representation would be

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  • Tax Debate Worksheet

    Yearly Income: 65,000 Flat Tax Some Americans are supporting switching to a flat income tax rate of 15%. How much would you pay under this plan? (60,000) X 15% (or .15) = 9,750 Calculator Tip: To multiply by a percentage, you can use your calculator in two ways. You can use the percent symbol key or you can enter the percentage as a decimal. To change a percentage to a decimal, move the decimal point two digit places to the left. Example: 20% becomes 0.20 Regressive Tax Plan Mark “X” next

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  • James vs Us Tax Court Case Brief

    USTC 9449, 7 AFTR2D 1361, 366 U.S. 213 (USSC, 1961) FACTS: In this particular case, the defendant, Eugene C. James, embezzled money from both his union employer as well as an insurance company and failed to include these funds as gross income for tax purposes. The taxpayer disputed that the embezzled money should not qualify as taxable income as the funds were already required to be returned. James used a previous decision from Commissioner of Internal Revenue v. Wilcox to show that the money

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  • Tax Reform

    state, and federal government. The purpose of taxes is to fund the government, the military, and services to low-income families. Programs such as food stamps, housing, Social Security, public school, and healthcare are available due to taxes. The tax system is based on the “ability to pay.” As an individual’s income increases, so does their taxable income rate. In my view, I do not like taxes. Looking at a hard earned paycheck and viewing the taxes that are withheld is quite depressing. However

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  • Tax Memo

    [Memorandum] To: Thomas Collura From: Bryan Alread Date: October 6, 2014 Re: Corporate Tax Refund Claim Facts: The client used an extension on their 2010 calendar year tax return to extend their filing date to September 15, 2011. The client electronically filed their return on September 4th but was rejected by the IRS. After making some changes they resubmitted their return on September 9th and was received and accepted by the IRS on September 10th. On June 10th 2014

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  • Flat Tax vs Progressive Tax

    A flat tax system is better than progressive tax. Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue . A flat tax would be a certain percent of gross income to be paid by all. Individuals or businesses would pay the same percentage regardless of income, with no deductions. But that would be just

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  • Tax Outline

    I. Orientation  • Regulation vs. Statutory Provision * Regs - have the force of law and are passed by executive agencies * Regs - must be based on a statutory provision and serve as interpretation of the statute. * Inconsistency B/W reg and statute Æ reg. wins

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  • A Study on Progressive Income Tax a Case Study of Us & Brazil

    A STUDY ON PROGRESSIVE INCOME TAX A CASE STUDY OF US & BRAZIL ________________________________________ INSTRUCTOR: DALIA EL-EDEL ECON 310-02 TERM PAPER - BY: JIHAD MASHAMOUN 900-08-2910 LARA AZZAM 900-09-3033 LUJANE MULLA 900-10-1019   ABSTRACT There is no doubt that the widening income disparities were a major driving force fueling the recent uprisings within the Middle East. One solution that has been put forth for adoption is the progressive income tax. This paper intends to assess

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  • Reforming the U.S. Tax Code

    S. Tax Code Accounting 307: Federal Taxation Professor Margaret Parrish Kinisha Doley-Griffin November 24, 2013   Should the tax system be reformed or should it not be reformed. That has been the question for years asked by congress and the people. Congress has not acted upon changing the tax system once during the debates. Many proponents of the tax reform support one system over another. We have heard multiple new suggestions for tax codes such as value added tax, a national sales tax, fair

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  • Should America Have a Flat Tax

    Should The United States Have a Flat Tax? The tax code in America is not only very complex, but most people outside of persons who has received specialized training do not understand taxes, forms, deductions, and various other aspects of the tax code. Not only is it hard to understand, but the time it takes to fill out various tax forms, and understanding the forms without the help of a person that knows all of the deductions and loopholes is almost impossible. Some people have taxes that are

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  • Flat Tax

    Flat Tax Rate Memo To: From: Date: Re: Benefits/burdens of implementing a “Flat Tax” From the U.S. Federal Government to each individual taxpayer in America, everyone cares about how tax is being paid. In this memo, we will discuss the benefits and the burdens of implementing a “flat tax”. The current U.S. tax system is complex. IRS has six federal income tax brackets ranging from 10 to 35 percent. This progressive tax system punishes the most productive members of society with a higher

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  • Death Tax

    The inheritance tax, or estate tax, is a tax which the United States levies on the total taxable value of the estate of a deceased person. The amount of tax is calculated regardless of the method in which the assets of the estate are transferred to the person's heirs: assets included in a will, transferred automatically because the person died intestate or as an insurance benefit or account payoff. Inheritance tax is paid by the executor of the estate or by the person in charge of its assets. The

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  • Tax Holiday vs. Accelerated Depreciation

    incentives for tax consideration. Some of the most used incentives offered to new business in Bangladesh are as follow: i. Tax Holiday ii. Accelerated Depreciation iii. Tax Subsidy In this paper we will be mainly focusing on Tax Holiday &amp; Accelerated Depreciation and which one is better for a newly established manufacturing concern in Bangladesh. What is Tax Holiday? A government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often

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  • Tax Law

    Tax Law and Accounting Craig ACC 483 June 21, 2010 Jeff Hough Modern taxation comes from a long history of changes in the United States beginning with the Revenue Act of 1861 that was designed to assist with funding the Civil War. This tax was repealed 10 years later. “In 1894 Congress enacted a flat rate federal income tax, which was ruled unconstitutional the following year by the U.S. Supreme Court because it was a direct tax not apportioned according to the population of each state”

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  • Fair Tax

    poverty. The current tax system in the U.S is ineffective ad unfair. It does not incentive the growth of economy and pushes the industries and jobs away due the high cost to accommodate in the U.S. To keep the system as it is now it will deteriorate even more this economy, that has to create more jobs instead of shipping them away and make sure that everyone is being taxed fairly. The solution for this broken tax system is the FairTax. It consists on a change to the federal government tax laws that will

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  • Should We Switch to Flat Tax?

    Should We Switch to Flat Tax? In general, all over the world more than ninety percent of government’s income comprises taxes collected from the public and corporations. American economy is concerned; it is the largest economy in the world. Government collects taxes directly and indirectly from individuals and corporations. Government is not a business entity but the regulating authority of the country. Therefore, government needs to fulfill needs and wants of people through economic activities

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  • Should We Switch to Flat Tax?

    Wipula 1 Wipula Sarathchandra Should We Switch to Flat Tax? In general, all over the world more than ninety percent of government’s income comprises taxes collected from the public and corporations. American economy is concerned; it is the largest economy in the world. Government collects taxes directly and indirectly from individuals and corporations. Government is not a business entity but the regulating authority of the country. Therefore, government needs to fulfill needs and wants of people

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  • Tax Reform

    problem of tax reform in the United States of America. First, I will give a description of tax reform in the United States of America. Second, I will assess the impact the problem poses to society. Third, I will design an economic policy solution to the problem. Fourth, I will analyze the economic theory used to complete the policy solution and determine the impact on the appropriate stakeholders. Last, I will analyze how the economic policy proposed would solve the economic problem. Tax reform is

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  • 2.03 Tax Debate Worksheet

    02.03 Tax Debate Worksheet Career Name: firefighter Yearly Income: $45,000 Student Name: Nisha Sumasar Flat Tax Some Americans are supporting switching to a flat income tax rate of 15%. How much would you pay under this plan? (Your Income) X 15% (or .15) = $6,750 Calculator Tip: To multiply by a percentage, you can use your calculator in two ways. You can use the percent symbol key or you can enter the percentage as a decimal. To change a percentage to a decimal, move the decimal point

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  • Tax, Personal Tax

    I think that Murray should not follow the suggestion of his immediate supervisor, because it’s actually not only against tax-related regulations but also the moral codes. What happened to this case? Let’s go back and take a look. First of all, the mistake came from the deficiency of tax calculation of selling taxpayer’s duplex. Then, the error was overlooked during the review process. Lastly, Murray’s immediate supervisor intentionally said forgot it. Conspicuously, this is a case of human

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  • Economics of Tax

    “Tax is a compulsory levy made by the public administration for which nothing is received directly in return’’ (James and Nobes, 2011). The income tax was primarily developed in England by Pitt the Younger in 1798 to help out finance the Napoleonic Wars.’’ In earlier times, taxes were usually only levied occasionally to pay for some huge expenses such a war. Since then the British tax system has developed in a largely ad hoc and politically expedient method’’. Amendments have been made to the existing

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  • Elements of Tax

    Important concepts Entities – tax versus legal • Tax entities o People, partnerships, joint venture, companies … are considered to be entities for the purposes of calculating income tax. • Legal entities o Companies, which have separate legal personalities, are legal entities. Income flows • Income should be considered as a cash flow stream, where timing is important. • The question is, when the income recognised as earned or deducted (because tax delayed is tax denied)? CLASS 1.2

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  • Corporate Tax

    create either current or future tax deductions * Corporate taxable income formula is relatively straight forward * Accounting Periods and Methods * Corporations measure their taxable income over a tax year and that their tax year must be the same as their financial accounting year * Generally elect their tax year when they file their first tax return * Timing when corps. recognize income and deductions depends on their accounting method * For tax purposes corps. have some flexibility

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  • Progressive Tax vs Flat Tax

    Our present progressive income tax system requires a complete overhaul into a flat tax structure. Efficiency throughout all related markets would increase, reducing distortions, and creating greater than ever incentives to work and create capitalist opportunities. It also presents the potential of solving our country’s budget deficit issues. Our current system stymies innovation and the desire to persevere by forcing a higher tax bracket on those who earn more, causing more individuals to pursue

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  • Income Tax

    appropriate tax rate to use to compare taxpayers’ tax burdens-the average or the effective tax rate? Why? -Effective tax rate would be the most appropriate because it provides a better depiction of a taxpayer’s tax burden. The reason for this is because it depicts the taxpayer’s total tax paid as a ratio of the sum of both taxable and nontaxable income earned. 14.) Arnold and Lilly have recently had a heated discussion about whether a sales tax is a proportional tax or a regressive tax. Arnold

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